Premier Foods annual pre-tax profit surges 75%

Mr Kipling and Bisto owner Premier Foods reported a rise in full-year profit and revenue on Tuesday, with the second half of the year benefiting from the colder weather.

In the 52 weeks to the end of March 2018, statutory pre-tax profit was up 74% to £20.9m on revenue of £819.2m, up 3.6%. Trading profit grew 5.1% to £123m and net debt fell £26.8m from the previous year to £496.4m.

Branded revenue was up 1.6% to £670.1m, while non-branded revenue was 13.9% higher at £149.1m.

International was the "star performer", with sales growing 25% and almost double the level of three years ago, while benefits from the Nissin and Mondelez International partnerships together contributed 55% of the company's revenue growth.

In terms of countries, Australia - now the group's largest market outside the UK - was the best performer, with revenue growth of 81%. Cadbury cake and Mr Kipling remained the main contributors to growth, now with a combined market share of nearly 10%, but the group also entered into its third category in the fourth quarter of the year, with the launch of Batchelors Soupa!.

Chief executive officer Gavin Darby said: "Three important drivers of this performance were innovation, our international business and our strategic partnerships with Nissin and Mondelez International."

"In the year ahead, we expect to make further progress on our key priorities, building on the strong momentum we created in 2017/18."

Darby added that the Batchelors brand is now the fastest growing in its portfolio, having been turned around from decline three years ago to double-digit growth for the past year. This followed the launch of new products designed to meet consumer trends such as Batchelors Super Noodles pots, which sold over 13m pots in the past year.

At 1020 BST, the shares were up 2% to 38.50p.